QuickBooks Online vs. QuickBooks Desktop
QuickBooks is the most dominant accounting product on the market. Many small and mid-size businesses use a QuickBooks product. Rightfully so! It offers comprehensive features that will make running your business a little bit easier. But between QuickBooks Online and QuickBooks Desktop), you may be wondering what the difference is.
QuickBooks Online and QuickBooks Desktop have some key differences that can be more ideal for your needs depending on the size of a business and how your business operates. As experts in the field, we at Infinite Accounting Solutions have written down the advantages and disadvantages of both so that you can figure out which one works best for you.
Advantages of QuickBooks Online
QuickBooks Online is not installed and does not run on your computer. Rather, it is cloud-based and runs using the internet, which means it can be easily accessed from any device using the internet. It can support up to twenty-five users depending on the subscription level. It has more automation. This allows bookkeepers to spend less time on the books. Bookkeepers can easily upload receipts and add expenses by using the app with a receipt capture function. The bank feed can be uploaded in real-time and be set up to automatically categorize transactions with pre-set “rules.”
Disadvantages of QuickBooks Online
QuickBooks Online can be expensive. To enable the option to have up to twenty-five users, you need to have the most expensive monthly subscription. Also, using any add-ons usually will cost you extra. It has limited inventory management capabilities. This may be a reason to use QuickBooks desktop or take advantage of third-party software to keep track of inventory. Sometimes it can also be slow when relying on an internet connection to use QuickBooks, depending on the speed and reliability of your internet connection. There can also be syncing issues with the bank feed, at times requiring you to reconnect your accounts or even call your branch, if needed.
Advantages of QuickBooks Desktop
QuickBooks Desktop provides industry-specific editions of the software, such as for construction, retail, professional services, manufacturing and wholesale, and nonprofit companies that include industry-specific reports and workflows. It is great for managing multiple businesses in one software. It is also better for businesses needing intensive inventory accounting. It provides in-depth management tools, such as allowing manufacturing companies to track their products using inventory parts and assemblies. QuickBooks Desktop isn’t cloud-based, so you can only access it from the computer you installed the software on. That feature comes in handy if you have limited internet access.
Disadvantages of QuickBooks Desktop
QuickBooks Desktop is installed on your office desktop computer. This means that you will not be able to access the software from other locations or devices unless you opt to purchase hosting. Hosting simulates the cloud-based environment by pushing your QuickBooks Desktop to the cloud and giving you a remote login and password. It is harder to use and requires more of a learning curve than QuickBooks Online as it isn’t as simple to navigate. With QuickBooks Desktop, you will need to take care of your own security measures. You will need to ensure you perform regular back-ups and save files in safe and secure storage.
QuickBooks Online and QuickBooks Desktop are both great accounting software in that they offer features that can make running your business much smoother. QuickBooks Online is best for clients who need to add a lot of users and access it remotely, as well as users who are newer to bookkeeping because of the easy-to-use format. QuickBooks Desktop is great for specific industries, especially those needing better inventory management and those who don’t require remote access or many users and who can take the time to learn the software.
In choosing which one to use, it’s important to ask yourself what features are most important and what software provides those features, or consider adding on third-party applications as an option. Also, consider the accounting and technical knowledge of the bookkeeper performing the duties as to whether Online may be an easier-to-use option for them.
We think both software has huge advantages and disadvantages. We use both software at Infinite Accounting Solutions and will help clients choose which one would better suit their wants and needs, as there can be very specific reasons for each business and industry as to why one software is better than the other in their case.
As a renowned bookkeeping firm located in Langley, British Columbia, Infinite Accounting Solutions offers exceptional bookkeeping services for business owners interested in spending less time on paperwork and more time generating sales. Whether it’s generating revenue or spending time with family, most business owners want to prioritize the things they enjoy rather than handling their companies’ paperwork. We understand and want to help reduce the paperwork burden. We offer a variety of bookkeeping packages to fit your needs. Our experienced bookkeepers provide clients with excellent customer service, expert accounting software knowledge, and advisory services to maintain up to date with industry standards.